Suspects Arrested
Hong Kong customs officials have arrested three individuals involved in a massive $230 million money laundering operation. The scheme involved a crypto platform and bank accounts linked to shell companies.
Investigation
The investigation revealed that one account received daily deposits of up to $4.9 million and facilitated 167 transactions. Two suspects allegedly handled 40% of the funds ($760 million) through Tether, a cryptocurrency.
Challenges
Investigating crypto-related money laundering is challenging due to anonymity and lack of jurisdictional restrictions. Customs officers used intelligence, capital flow analysis, and financial investigations to gather evidence.
Arrests and Charges
The trio, including a 42-year-old woman and two men aged 48 and 60, set up five companies and opened 18 bank accounts between June 2021 and July 2022. They allegedly made over 1,000 suspicious transactions, receiving funds from unknown sources.
The suspects are charged with conspiracy to deal with proceeds of an indictable offense (money laundering). They face up to 14 years in prison and a $5 million fine if convicted.
Ongoing Investigation
The source and destination of the funds are still under investigation. Customs authorities believe they have apprehended the core members of the syndicate but have not ruled out further arrests.
